Global Financial Instability: Framework, Events, Issues

Глобальная финансовая нестабильность: основы, события и проблемы
Frederic S. Mishkin
1999-11-01

East Asian crisisMexico crisiseconomic activityfinancial crisesglobal financial instability
Two of the key questions facing policymakers today are how to reduce the risk of global financial instability and how to cope with it when it occurs. This paper starts by defining financial instability and then showing how it harms economic activity. It then uses this framework to describe what happened during the recent financial crises in Mexico and East Asia. The paper ends by raising several key policy issues; not coincidentally, these issues are addressed in the remaining papers in the symposium.
1
It applies this analytical framework to examine the financial crises in Mexico and East Asia.
2
It concludes by highlighting key policy issues concerning prevention and crisis management, which frame the symposium’s remaining contributions.
3
The paper defines global financial instability and explains the mechanisms through which it harms economic activity.
4
The paper identifies reducing the risk of global financial instability and managing its consequences as central policymaking challenges.

Global financial instability, with financial crises in Mexico and East Asia

The definition, economic effects, crisis manifestations, and policy issues of global financial instability

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1999-11-01
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Frederic S. Mishkin
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